Latest Payments News: New US FTC ‘Click-To-Cancel’ Rule Will End Subscription Traps, and more

Catch up on six of the stories our payments compliance analysts have covered lately, and stay up-to-date on the latest news.

New US FTC ‘Click-To-Cancel’ Rule Will End Subscription Traps

The US Federal Trade Commission (FTC) has finalised a new ‘Click-to-Cancel’ rule that aims to prevent consumers being caught in subscription traps.

The rule requires sellers to make it as easy for consumers to exit a subscription as it is to enter one.

“Too often, businesses make people jump through endless hoops just to cancel a subscription,” said Lina Khan, chair of the FTC.

“The FTC’s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.”

Following a consultation on the proposed rulemaking in March 2023, the FTC said it had received more than 16,000 comments from consumers and state agencies, consumer groups and trade associations.

FSB Consults On Common Format For Reporting Operational Incidents

The Financial Stability Board (FSB) has launched a consultation on a new common format for reporting operational incidents, including cyber incidents.

The framework, known as the “format for incident reporting exchange” (FIRE), aims to streamline incident reporting across financial firms and jurisdictions, enhancing global coordination and regulatory oversight.

FIRE seeks to address the current fragmentation in reporting practices by promoting better communication and facilitating a more unified response to incidents that could impact financial stability.

The initiative follows the FSB's 2023 recommendations on cyber incident reporting and includes a structured data model and machine-readable format.

The consultation is open until December 19, 2024.

Digital Ruble Will Be Ready For Launch In 2025, Says Russian Central Bank

The Bank of Russia has confirmed its timetable for the phased launch of the digital ruble, the country’s retail central bank digital currency (CBDC).

By July 1, 2025, major banks must offer their clients digital ruble accounts, deposits and funds transfers.

Other banks will have until July 1, 2026 to offer digital ruble services to customers, and credit institutions will have until July 1, 2027.

In addition, the regulator plans to set deadlines for the mandatory acceptance of payments in digital rubles by trade and service companies (TSCs).

Payments for purchases with digital rubles will be conducted using a universal QR code based on the National Payment Card System (NSPK), which will help banks and TSCs avoid additional costs.

The Bank of Russia has sent its proposals to amend the relevant laws to the Russian Ministry of Finance.

BIS Launches Project Aperta To Leverage Open Finance

The Bank for International Settlements (BIS) Innovation Hub has announced the launch of Project Aperta, an initiative to reduce payment frictions and costs globally through open finance.

The initiative seeks to connect domestic open finance infrastructures across jurisdictions, enabling seamless cross-border data sharing via application programming interfaces (APIs).

The project will initially focus on trade finance for small and medium-sized enterprises (SMEs), potentially accelerating processes such as account opening and trade data exchange.

The UAE, the UK, Brazil and Hong Kong SAR are among the jurisdictions in which national regulators are participating in the project’s current phase.

Santander Launches A2A Payments Partnership In UK With Token.io

Santander has announced a new open banking partnership with Token.io, a provider of account-to-account (A2A) payments infrastructure.

Initially, Santander will leverage Token.io’s infrastructure to offer payment directly from an external bank account as a credit card repayment option.

“With direct A2A payment for card repayments, Santander customers can enjoy a more seamless payment experience than direct debit or manual bank transfers,” said Token.io.

“The solution eliminates error-prone manual data entry and supports biometric strong customer authentication (SCA) for payments made on mobile devices.”

In addition, Santander plans to use Token.io infrastructure to modernise real-time money movement for its retail banking clients.

The partnership was announced during the opening keynote at the Open Banking Expo in London on Tuesday (October 15).

Brazil Opens Registration For Drex Pilot Phase 2

The Central Bank of Brazil (BCB) has published rules and procedures for the submission of business case proposals from entities interested in participating in the second phase of the Drex pilot, which could become Brazil's central bank digital currency (CBDC).

This phase invites entities to propose business cases for testing, which will be implemented via smart contracts on the pilot platform.

According to the BCB, institutions operating in the financial market that have the capacity to test the proposed business model may participate in the pilot project.

These could include transactions involving the issuance, redemption or transfer of assets, or simulations of financial flows arising from trading events.

There is no cap on the number of business cases selected, with the final choices based on the central bank's technical and operational capacity.

Eligible institutions, meanwhile, are required to submit proposals to the central bank in line with the project’s guidelines, detailing the business case’s potential benefits, privacy measures and any legal or regulatory challenges.

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